§ 31A-28-106. Continuation of the association -- Association duties -- Allocation of assessments -- Not agency of state.

(1)

(a) There is continued under this part the nonprofit legal entity known as the Utah Life and Health Insurance Guaranty Association created under former provisions of this title.

(b) All member insurers shall be and remain members of the association as a condition of their authority to transact insurance in this state.

(c) The association shall:

(i) perform its functions under the plan of operation established and approved under Section 31A-28-110; and

(ii) exercise its powers through a board of directors established under Section 31A-28-107.

(d) The association shall allocate assessments among the following classes or subclasses:

(i) the life insurance and annuity class, which includes the following subclasses:

(A) the life insurance subclass;

(B) the annuity subclass:

(I) which includes annuity contracts owned by a governmental retirement plan, or its trustee, established under Section 401, 403(b), or 457, Internal Revenue Code; and

(II) otherwise excludes unallocated annuities; and

(C) the unallocated annuity subclass, which excludes contracts owned by a governmental retirement benefit plan, or its trustee, established under Sections 401, 403(b), or 457, Internal Revenue Code; and

(ii) the accident and health insurance class.

(2)

(a) The association shall:

(i) come under the immediate supervision of the commissioner; and

(ii) be subject to the applicable provisions of the insurance laws of this state.

(b) Meetings or records of the association may be opened to the public upon majority vote of the board of directors of the association.

(3) The association is not an agency of the state.

Amended by Chapter 320, 2006 General Session